Mr. Pink Dan Loeb’s 5 Long-Term Stock Picks

2. PG&E Corporation (NYSE:PCG)

Number of Hedge Fund Holders: 52

Third Point’s Stake Value: $958,072,500

Third Point’s Holding Period: 2 years 9 months 

PG&E Corporation (NYSE:PCG) is involved in the distribution and supply of electricity and natural gas across the United States. The company generates electricity through nuclear power, hydroelectric power, fossil fuel-fired power plants, fuel cells, and photovoltaic systems. In Q1 2023, PG&E Corporation (NYSE:PCG) was the largest stock in Dan Loeb’s portfolio, with the billionaire holding 59.25 million shares worth $958 million. It is one of his top long-term stock picks. 

On May 4, PG&E Corporation (NYSE:PCG) reported a Q1 non-GAAP EPS of $0.29, in-line with market consensus. The revenue increased 7.3% year-over-year to $6.21 billion, outperforming Wall Street estimates by $20 million. 

According to Insider Monkey’s first quarter database, 52 hedge funds were bullish on PG&E Corporation (NYSE:PCG), with combined stakes worth approximately $3 billion. Stuart J. Zimmer’s Zimmer Partners is a prominent stakeholder of the company, with 17.85 million shares worth $288.7 million. 

Third Point Management made the following comment about PG&E Corporation (NYSE:PCG) in its Q1 2023 investor letter:

“Our strategy is to preserve liquidity and buying power to take advantage of markets when they “break”. While overall indices remain elevated, we are finding more chances to provide liquidity across all three asset classes in which we invest – credit, structured credit, and equity – opportunities which have been key drivers of performance for the fund. Our portfolio is balanced across industries with a focus on event-driven names including companies involved in spin-offs, significant cost-cutting, or other types of under-appreciated business transformation. PG&E Corporation (NYSE:PCG), which is still our largest position, continues to deliver strong performance, down 50bps in the first quarter but up 6.2% for the year to date after the Fire Victims Trust sold another 60 million shares in a block trade.”